I Can’t Pay My Loan

Having Trouble Making Your Payments?

Skyline Home Loans is proud to offer assistance to borrowers who are experiencing hardships that impact their ability to maintain their mortgage obligations. There are alternatives to FORECLOSURE but you must take action immediately and CALL US TODAY. Call (855) 282-0100, Option 4 to speak with a Loss Mitigation Specialist/Loan Counselor who can discuss your situation with you and may be able to help you avoid foreclosure.

Depending on your individual circumstances, you may be eligible for one of various repayment solutions, such as:

Forbearance: A forbearance is a temporary postponement of your regularly scheduled mortgage payments. It can be a partial forbearance, in which you are still required to make a reduced monthly payment, or a full forbearance, where the entire payment is put on hold.

A forbearance is most helpful in providing temporary relief for sudden, unexpected hardships that are expected to be resolved in less than a year. A common example would be a natural disaster, in which the property requires repairs and there may be a delay in receiving insurance proceeds.

Repayment Plan: A repayment plan allows a borrower who has fallen behind in their obligations to make an increased payment for a designated amount of time, with the extra amount going towards the missed payments until the loan is completely current. Repayment plans do not provide payment relief, but do provide a way to help delinquent borrowers become current without having to fully reinstate the loan in one lump sum payment.

A repayment plan may be appropriate, for example, if you can normally afford your mortgage payment, were unable to pay for a short period of time due to an unforeseen circumstance, and cannot afford to pay all of the missed payments at once in order to bring the loan current immediately, but can afford a slightly higher monthly payment each month.

Modification: A loan modification brings your account up to date immediately by adding past due interest and escrow payments to the unpaid principal balance and re-amortizing your payments over a new term, and results in a permanent change to one or more of the terms in your mortgage agreement. In order to be considered for a loan modification, you must be able to document a qualifying hardship that has or will impair your ability to maintain the original terms of your contract over a long-term or permanent basis. You must also be able to document your ability to afford the new modified payment.

A loan modification may result in a temporary or permanent change of interest rate, an extension of your loan term, and/or an increase in the principal balance of your loan to account for any missed payments and arrearages. Certain government-backed loans may also be eligible for a principal forbearance.

Short Sale: A short sale allows a borrower to sell their property even if the proceeds from the sale will not fully satisfy the mortgage debt. In order to pursue a short sale, you must list your property with a qualified real estate agent and receive an offer from an unrelated third party. You may be required to make a cash contribution or sign a promissory note for all or some portion of the mortgage debt in order for the sale to be approved.

Deed-in-Lieu of Foreclosure: A deed-in-lieu of foreclosure is a last resort option in which you voluntarily sign over the deed to the property. In order to be considered for a deed-in-lieu, you must first pursue a short sale by listing the property for sale at market value with a realtor for an extended period of time.

What we’ll need from you:

In order for your Loss Mitigation Specialist/Loan Counselor to completely understand your situation and find the best solution for you, it is important that you gather and complete the following documentation as quickly and completely as you can.

Monthly mortgage statement

Information about other mortgages on your home, if applicable

Two most recent pay stubs for all household members contributing toward the mortgage payment

Last two years of tax returns

If self-employed, the most recent quarterly or year-to-date profit and loss statement

Documentation of income you receive from other sources (alimony, child support, social security, etc.)

Two most recent bank statements

A utility bill showing homeowner name and property address

Unemployment insurance letter, if applicable

Account balances and minimum monthly payments due on all of your credit cards

Information about your savings and other assets

It may also be helpful to have: A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.)

In addition, you need to complete and submit the following forms:

Request for Mortgage Assistance

IRS Form 4506T-EZ or 4506-T

If you've already received an offer from someone to purchase your home, be prepared to submit these additional forms:

Alternative Request for Approval of Short Sale (Alternative RASS)

Executed sales contract

We may also require access to your property to determine its current value.

You may wish to contact a HUD-approved housing counselor to help you understand your options and prepare your application. The Department of Housing and Urban Development (HUD) can provide you with the name and address of the local HUD-approved counseling agency by calling their toll free hotline at 800-569-4287.

Keep in mind that any decision to offer a Work Out Option is made on a case by case basis; the decision is dependent on the information you provide us and such an offer is not guaranteed. It is, however, important that you call us as soon as possible.

Any existing foreclosure action will not be stopped unless a work out option is agreed to and finalized by all parties; all fees and charges incurred must be paid but may be included in the work out option.

Washington: If your property is located in Washington, you may contact the Department of Financial Institutions, the Washington State Bar Association, or the statewide civil legal aid hotline for possible assistance or referrals at 1-877-894-HOME (4663).

Robert Geiler

The information contained in this site has been prepared by an independent third party and is distributed for educational purposes only. This is designed to give helpful tips on the mortgage process and is not intended to give legal advice. Information is considered reliable but not guaranteed. This is not a prequalification, preapproval, loan approval or commitment to lend. Powered by Lenderd Mortgage Marketing Automation